Maersk in deal to operate big cold storage facility at Saudi port

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Global freight major Maersk has signed an agreement with Saudi property developer Refad Real Estate to operate a state-of-the-art cold storage facility at King Abdulaziz Port in Dammam.

King Abdulaziz Port remains a strategic trade gateway for Saudi Arabia’s Eastern and Central Regions to the world, giving it a unique edge in the eyes of prospective investors looking to set up integrated logistics parks that offer value-added services.

Announcing the deal, Saudi Ports Authority (Mawani) said the cold storage facility will come up on a 30,000 sq m area, with a capacity to hold 168,000 pallets of fruits and vegetables, frozen goods, processed foods, and dairy products per annum.

To be equipped with world-class temperature and humidity control systems, the new cold storage unit will source 15% of its energy needs through 600 KW solar panels to cut back on carbon emissions.

The facility comes with an on-site water treatment installation to meet its requirements in-house while eliminating the need to carry water via trucks to external water treatment plants, thereby reducing the carbon footprint resulting from driving these vehicles up to 87,600 km annually, said the statement from Mawani.

In addition, electric vehicles will be used for transportation between the cold stores and King Abdulaziz Port, a key step in fulfilling the ambitions of the Saudi Green Initiative.

The agreement was sealed in the presence of Engineer Saleh Al Jasser, Minister of Transport and Logistics Services and Chairman of Mawani, Omar Hariri, President of Mawani, alongside Mohammad Shihab, Managing Director of Maersk Saudi Arabia and Abdulaziz Al Qahtani, Chairman of Al Qahtani Holding, said the statement.

It is expected to boost the kingdom’s food security and significantly drive up its food trade volumes through the Arabian Gulf port.

Besides the deal is likley to enhance the maritime sector’s logistics offerings in general and cold chain solutions in specific as per the objectives of the National Transport and Logistics Strategy (NTLS) to position Saudi Arabia as a global logistics hub, it added.